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For customers on standard variable tariffs this will be the first increase in more than three years

Typical dual fuel customers will save this winter and we will step up action to help loyal customers choose the best EDF Energy tariff

EDFEnergy’s success in making it easy for customers to switch means 44% of customer accounts are fixed deals – higher than most large suppliers

The decision to cut gas prices, our forward purchasing of energy, our strong customer service, a track record of making it easy to choose tariffs are all part of EDF Energy’s long term focus on treating loyal customers fairly and responsibly

EDF Energy is today announcing changes to prices for customers on standard variable tariffs. It is cutting gas prices again ahead of the coldest winter months and will hold back electricity price rises until March.

Electricity costs have been rising for some time, but gas prices are not facing the same pressures. The company believes it is right that prices reflect this. Being open with customers about future price rises also gives us the opportunity to help more customers choose to fix prices with an EDF Energy fixed deal.

Since the last electricity price change over three years ago, a number of electricity costs have risen substantially. EDF Energy has worked hard to limit the impact of these costs for customers through efficiency savings across the business, whilst its responsible policy of buying energy ahead of time has protected customers from the more recent volatility in wholesale energy costs. However non-wholesale energy costs have risen to ensure reliable supply though investment including in networks, renewables and metering.

Action for loyal customers

EDF Energy has a strong track record of engaging customers and as a result 44% of its customer accounts are on fixed tariffs, one of the highest proportions of the larger suppliers. These 1.5 million EDF Energy customers will not be affected by these price changes.

EDF Energy is committed to helping its loyal customers get the most from their energy, and has delivered a number of initiatives to support this. The company is delivering the remedies set out by the Competition and Markets Authority earlier this year. It has taken significant steps to increase the number of customers on its fixed tariffs, including campaigns such as the ‘Show me your Bill’ campaign, designed to make it easier for consumers to compare tariffs and see if they could be better off moving to EDF Energy, and went further than required in providing customers with cheaper tariff messages. It is taking a leading role in testing Ofgem’s database remedy for disengaged customers.

The company will redouble its efforts to engage loyal customers and help ensure all customers have made an active choice about their tariff and payment methods. Prioritising those who have been on standard variable tariffs longest or who are vulnerable, we will offer customers an energy health check, as well as the opportunity to sign-up for a smart meter and energy efficiency advice. This is part of EDF Energy’s continuing focus on fairness for loyal customers.

EDF Energy’s action today will also benefit around 200,000 prepayment customers, as the 12.9% reduction in their gas tariff from 6th January ahead of the Competition and Markets Authority price cap, will provide an additional three months of savings before the official cap is introduced. From March, dual fuel prepayment customers’ standard variable tariffs will be 5.1% lower than today, at £1081.

In the coming weeks, EDF Energy will write to its standard variable customers to explain the impact of these changes and to provide details of EDF Energy’s best fixed deals.

Beatrice Bigois, Managing Director of Customers at EDF Energy said:

“We want to help loyal customers by cutting gas prices ahead of the coldest winter months, and delaying electricity increases until later in the year. This will save customers money this winter. Gas prepayment customers on our variable tariffs will also benefit three months ahead of the price cap being introduced following the Competition and Markets Authority investigation.

“Many industry commentators have said that prices charged by energy suppliers will rise after the winter. We are being open about the fact our electricity prices will go up after our price freeze. But we also know it is right to pass on to loyal customers the fall in gas costs that energy suppliers have seen over recent months.

“With energy prices rising, we will continue to make it easy for customers to move onto EDF Energy’s fixed tariffs, where they can save money and get peace of mind. Letting customers know now provides them with more time to lock in a cheaper fixed deal.”

Summary of price changes

From January 6th, customers on a standard variable gas tariff will see their prices reduce by £29[2] a year (-5.2%). This means customers will see the benefit of this for winter, when gas usage is at its highest – saving customers a total of £9m[3]in January and February alone. The cut will be the third in two years, with a total reduction for these customers of 11.4 %[4] since 2015

From March 1st, electricity prices will increase for standard variable customers by £42[5] a year (8.4%)

From March 1st, a typical dual fuel bill direct debit price will be £10825, a rise of £13 a year or 1.2%.

From January, prepayment customers will see their gas prices reduce by 12.9%, and in March electricity will rise by 3.6%, resulting in a dual fuel decrease of £58[6] a year (-5.1%).

For more information contact:

EDF Energy

EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to over 5 million customer accounts and is the biggest supplier of electricity by volume in Great Britain.

EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.

These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.

Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.

In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.

EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 14,000 people at locations across the UK.